| Case ID |
05cc6bf4-07d8-4d18-907c-3383af856771 |
| Body |
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| Case Number |
Civil Appeal No.54-D of 1963 |
| Decision Date |
Jun 22, 1964 |
| Hearing Date |
|
| Decision |
The Supreme Court ruled that the partnership deed executed after the commencement of the accounting year could still be registered retrospectively, affirming the validity of the partnership from the effective date of the contract. The court emphasized that the key issue was whether the partnership existed in reality before the formal documentation. The decision also highlighted that registration should not be denied merely due to the timing of the deed's execution, as long as the partnership was genuinely in operation during the relevant accounting period. The court allowed the appeal, indicating that the registration of the firm should have been granted for the full previous year, aligning with the provisions of the Income Tax Act. |
| Summary |
This case revolves around the interpretation of the Income Tax Act, specifically Section 26A, regarding the registration of partnership firms. The Supreme Court of Pakistan examined whether a partnership, which had existed prior to the formal execution of its deed, could be registered for tax purposes. The court concluded that the partnership deed's execution date should not affect the registration if the partnership was operational prior to that date. This ruling is pivotal for similar cases, as it clarifies the application of tax laws regarding the timing of partnership deeds and their impact on tax liabilities. This decision underscores the importance of recognizing genuine business operations over strict adherence to documentation timelines, thus providing a precedent for future cases involving partnership registrations. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
A.R. CORNELIUS C.J.,
FAZLE-AKBAR,
HAMOODUR RAHMAN
|
| Lawyers |
A.F.M. Mesbah-ud-Din, Advocate Supreme Court,
Abdul Matin Khan Chowdhury, Attorney,
Siddique Ahmed Chowdhury, Advocate High Court,
Sirajul Haq Advocate Supreme Court,
Zinnur Ahmad, Attorney
|
| Petitioners |
COMMISSIONER OF INCOME TAX
|
| Respondents |
NOOR HUSSAIN
|
| Citations |
1964 SLD 149,
(1964) 10 TAX 206,
1964 PTD 629,
1964 PLD 657
|
| Other Citations |
2016 PTD 1675,
PLD 1997 SC 32
|
| Laws Involved |
Income Tax Act, 1922,
Income Tax Rules, 1922
|
| Sections |
23(5)(b),
26A,
28,
2,
6B
|